EGLD is down by more than 1% today despite the broader cryptocurrency market performing positively.

The cryptocurrency market has turned around a corner this week after a poor start to the week. The market has added more than 2.5% to its value, and the total market cap now stands close to $1.25 trillion.

Bitcoin is once again trading above $30k per coin after adding more than 3% to its value in the last 24 hours. Ether was able to defend its $1,700 support level after rallying by more than 2% today.

However, EGLD, the native token of the Elrond ecosystem, is one of the worst performers amongst the top 50 cryptocurrencies by market cap. 

EGLD has lost more than 1% of its value over the past 24 hours and currently trades above $66 per coin. 

The coin has been underperforming since reports emerged that there might be an exploit of the Maiar DEX or SC async calls. The glitch reportedly led to some hackers selling EGLD for stablecoin USDC. 

EGLD has come under pressure since the reports emerged and is now underperforming against the broader market.

Key levels to watch

The EGLD/USD 4-hour chart is currently bearish as Elrond has been underperforming over the past few days. The technical indicators show that EGLD is struggling against the US Dollar.

The MACD line is below the neutral zone, indicating selling pressure from the market. The 14-day relative strength index of 36 shows that EGLD is currently in the oversold region.

If the bearish trend continues, EGLD could drop below the $62 resistance mark over the next few hours. Unless there is an extended selling pressure, EGLD should defend its second major support level around the $59 mark in the short term. 

Cardano’s stablecoin hub Ardana has inked a partnership with scalable blockchain architecture platform Elrond to integrate the latter’s native EGLD coin as one of the first cross-chain assets to collateralize stablecoins on Ardana.

EGLD to Be Available on Ardana

In an announcement made today, Cardano-based stablecoin-focused DeFi platform Ardana stated it had inked a long-term strategic partnership with highly scalable blockchain platform Elrond to add EGLD as one of the first cross-chain digital assets to collateralize stablecoins.

Ardana is committed to developing the necessary infrastructure to enable the transfer of digital assets between Cardano and Elrond, the announcement reads.

By bridging the gap between Cardano and Elrond ecosystems, Ardana will allow seamless of projects building on both the smart contract platforms. This would include enabling token transfers between the Elrond mainnet and Cardano compatible chains, followed by cross-chain smart contract functionality.

Further, the integration also makes it possible to move assets from Cardano to Elrond while preserving their value by enabling high-speed and low fees transfers. Eventually, EGLD will be available as an asset on Cardano and will find utility as collateral to mint stablecoins on Ardana.

For the uninitiated, Elrond is a scalable, low-fees, and carbon-negative Layer 1 blockchain network capable of handling more than 100,000 TPS, 6 seconds latency, at $0.001 transaction cost. The smart contract platform is focused on fintech, DeFi, and IoT.

Elrond’s economic model has a capped supply and decreasing issuance which encourages furthering scarcity with rising adoption. Elrond’s native token, eGold (EGLD) serves as an excellent collateralization asset courtesy of its intrinsic store of value properties.

Commenting, Beniamin Mincu, CEO, Elrond Network, said:

“This creative exploration of collateralizing a stable coin on one chain with the native coin of another can be a great starting point for greater interoperability between two progressive global ecosystems that are anchored in performance and innovation.”

Similar sentiments were echoed by Ryan Matovu, CEO and Founder of Ardana. He said:

“eGold is a scarce asset with capped supply that is very in demand right now. We’re excited to take on the challenge of making it available to the Ardana users and offer them more options to issue dUSD that is underpinned by strong assets that imply lower overcollateralization.”